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Following is a transcription of the video:

Narrator: The Super key is America"s biggest annual sporting event. Every year, end 100 million TV viewers song in because that the huge game, do the Super bowl nine the the 10 most-watched American TV program of all time. And also hosting that has become as American together watching it.

You are watching: How much revenue does the super bowl generate

Many at sight Bowl hold committees believe that popularity have the right to mean simply one thing: huge profit because that the city. Committees and also the NFL claim that the video game can spur 300 to 500 million dollars of safety in a hold city. For example, in 2018 Minnesota"s host committee reported the Super key 52 brought in $450 million come its fifty percent of the pair Cities. But sports economists, including Victor Matheson, space skeptical.

Matheson: "If who claims, "Look, this occasion is three, four, 5 hundred million dollars," what one economist would certainly say is: "Prove it.""

Narrator: In fact, as soon as Matheson crunched the numbers, he uncovered that Super key brings in in between $30 and also $130 million, a fraction of what the organize committees and the NFL claim.

Here"s why hosting the Super bowl isn"t as valuable as human being think.

So what go it cost to hold a supervisor Bowl? Matheson contends that for some cities the price starts with building a new stadium. Seven NFL stadiums were constructed from 2006 come 2017. And by 2019, every will have actually hosted a at sight Bowl. And on average, taxpayers add $250 million for stadium construction.

Matheson: "They say, "Look, you build the stadium and also we"ll lug you a at sight Bowl." If the at sight Bowl actually brings four or five hundred million dollars to the city, then, all of a sudden, handing over $500 million in taxpayer subsidy looks choose a pretty great deal. Unfortunately, if the actual influence is a portion of that, then, every one of a sudden, taxpayers are on the hook for a large stadium, and they"re not obtaining much in the means of help, at the very least from the at sight Bowl, come pay the stadium off."

Narrator: In enhancement to the stadium, i m sorry the NFL provides at no charge, there"s additionally the price of hosting the event, choose public transportation and also police overtime. For example, in 2014, brand-new Jersey provided the NFL an $8 million taxes break, and also NJ Transit finished up with $5.6 million that losses carrying fans to and also from the at sight Bowl.

But on top of that, the NFL requires extr expenses. Minneapolis"s Star Tribune released the NFL"s 153-page bid publication that it acquired in 2014. The record lists countless dollars worth of the NFL"s specifications and requirements for host cities. The perform includes: parking spaces, hotel rooms, transportation, billboards, security, food, access to golf courses and bowling alleys, in addition to an exemption on paying city, state, and local tax.

Matheson: "That obviously method that a lot much less money is difficult in the city. That"s all going ago to NFL"s headquarters, and, at the point, the money does gain shared. But again, it doesn"t get shared with regional governments. That gets shared with the other 32 team owners."

Narrator: These are high demands, and committees comply under the assumption that they"ll make the money back. However just exactly how much that a profit room cities actually making? Well, the all relies on just how you do the calculations.

Matheson discovered three differences for the disparity. The first is substitution effect, which is once consumers invest money top top a sporting event, that they would have spent anyway. So that doesn"t increase the lot of money gift spent. It rearranges the safety pattern.

The 2nd is crowding the end effect, which is once crowds connected with a sporting occasion displace regular spending. So if the Super bowl fills every hotel the would normally be 80% occupied, the NFL is only bookkeeping for the 20% increase.

And the last reason is leakage, which account for wherein the money ultimately ends up. Many hotels usually rise prices by three or 4 times throughout the super Bowl, but corporations and shareholders reap the services of the price increases, no the neighborhood workers.

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Matheson: "So, what you"re make the efforts to execute is, you"re trying to salary for 10s of numerous dollars of expenditures on yes, really not lot in the method of extr economic activity, so, girlfriend can definitely not come the end ahead, at the very least as a state or neighborhood government."

Narrator: In 2008, Glendale, Arizona organized Super bowl 42, and the city"s mayor told ESPN the the city lost $1 million in the process. In 2016, san Francisco organized a mainly of occasions leading approximately Super bowl 50, which was being hosted in Santa Clara, and San Fran finished up v a $4.8 million public solutions bill.

Matheson: "We do have some proof that huge events, choose the Super key or the Olympics, at the very least temporarily cause a surging in happiness. But, we must be careful about that. So, if girlfriend wanna say, hey, bring in the super Bowl due to the fact that it makes civilization happy, that"s great. Simply don"t tell us it renders us rich."